New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1887-02-18
TAXING LIFE INSURANCE COMPANIES.

CONTROLLER CHAPLIN ON IFS ADNISABILIrY -
$l00O,00O ALREADY DUE THE STATE
ALBANY, Feb. l7.-ContToler Chapins special report
on the taxation OF o insurance companies sent to
the Legislature today The loyal controversy in which
the consttutonay OF the collateral inheritance law was
questioned has been determined by the Court of Appeals
and its decision that the law IL constitutional and valid
Affects interests intimately connected with the pubic
treasury OF these the corporations engaged in life
insurance concerning tho taxing OF which Mr. Chaplin
says:
These corporations hold position which is most pecu
liar There IL valuable powerful class OF cor
poraons. There is no form OF business IN which great
agcregaons OF capital have been so rapidly accunu
lated Yet 10 the present day they have paid no tax
whatever directly to the State treasury Upon the great
a ass or Of anS S form Of tax the business Corporations
ganzed under the laws of New York and ENGAGED in NE
upon December 81, 1885 The aggregate Incomes OF
such companies in 1885 was So OO0.O00.
The policies in force In this state upon Janu airy l.
1856. issued by New York companies numbered % 900
Many OF these policy holders are seeking an Investment
than security against disaster and such
ers are enpatcay OF kind that should pay taxes. The
companies hold hundreds of millions OF dollars OF loans
upon real estate secured by mortgage Finally the New
YORK companies had accumulated upon January i,
1856 and above the reserve required by law sur
plus funds OF SOL 100000 Surely this sum ought not TO
That the considerations already submitted are in ac-
corance with legislative and governmental views OF pub
lie policy shown by tho fact that nearly seven years
ago there was enacted law which provided that every
life insurance company Incorporated under the laws or
this state should pay annual tax on It's corporate
franchise or business this State. per cent upon the
gross amount of premiums interest md other income
ceyed by company during the year IRON persons
residing IN this State, from investments represented
by or based upon property situated In this state This
law has been repealed. But IT has during the
years produced no revenue Tor the reason hat II
contains clause stating the olccto which the tax was
to be applied. .. -,-
In the OF Mary Mcpherson the Court OF Appeals
touching the consuonaity OF the collateral inherit
holds that this provision OF the Constitution
was intended to apply to the ANNUAL recurring taxes
known at the time OF the adoption OF the Constitution
and Imposed generally upon tho entire properly OF inc
State and the court says: I've do not think that tho
policy embodied In the section had any reference 10 spe
cal taxes. which may be collected III variety OF ways
under general laws, such auction duties excise duties
taxes business particular trades avocatons OF spe
DIAL classes OF properly Since this decision there seems
TO be Tor doubt that the law OF 1850 e valid and
that the life Insurance companies organized under the
law OF this State and doing business In the State are
liable under the law for seven years arrears For the
full period OF seven years tho companies owe the State
81 100000.
That this could be recovered In an action seems
clear but such course might impose burdens so sug
gee 10 your honorable body compromise which u EN-
Bodied In proposed law which provides that the com
panies shall pay the tax duo under the law for the years
1854 1885 and 1885, and authorizes the Controller upon
such payment being made within sixty days 70 dis-